The Securities and Exchange Board of India unveils a comprehensive plan to ease foreign investor entry through digital onboarding, expanded derivatives, and new instruments linked to real estate and infrastructure trusts, signalling a push towards deeper and more resilient markets.
Sebi is preparing a broader push to make Indian markets easier for foreign investors to enter and trade in, with Chairman Tuhin Kanta Pandey saying the regulator is working on simpler digital onboarding, wider access to non-agricultural commodity derivatives and new instruments linked to real estate and infrastructure trusts.
Speaking at the JP Morgan India Conference, Pandey said the Securities and Exchange Board of India wants to cut friction throughout the investment process. He pointed to SWAGAT-FI, a framework for trusted, lower-risk foreign investors that began operating on June 1, 2026, and is already being used by about 205 foreign portfolio investors. Sebi is also pushing designated depository participants towards digital workflows and application programming interface-based integration to speed up onboarding, he said.
Pandey said the regulator’s next phase would focus on easier access, deeper markets and greater resilience. According to Sebi, it is consulting on net settlement of funds for mutual fund schemes in the cash market, and it has already issued a consultation paper on how derivatives should be settled on expiry days after establishing a closing auction session. The regulator is also looking at ways to expand cash market participation, improve securities lending and borrowing, and support hedging and arbitrage to strengthen price discovery.
In commodities, Sebi has already allowed stock exchanges to offer direct market access to foreign portfolio investors in exchange-traded commodity derivatives. Pandey said the regulator now wants to go further by widening foreign participation in non-agricultural commodity derivatives, while also working on a market-making framework for corporate bonds, consultations on fixed income channel partners and a proposed credit risk-o-meter to help investors assess bond risk more clearly. He added that Sebi is reviewing the accredited investor framework and is considering proposals to allow investment in foreign securities and support global fund-management activity from India.
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